One of the leading networks of forum communities on the Internet,
CrowdGather, Inc. (OTCQB:CRWG), today announced financial results for
the second quarter ended October 31, 2012.

The Company reported revenues of $423,732 for the three months ended
October 31 of fiscal 2013, resulting in $1,014,934 in total revenue for
the six months ended October 31 of fiscal 2013, compared to $468,296 and
$802,332, respectively, for the same periods in the prior fiscal year.
Due to the timing of certain advertising campaigns, revenues from the
second quarter of fiscal 2013 were 10% lower than the prior year period,
but revenues increased by over 26% when comparing the first six months
of fiscal 2013 to the first six months of fiscal 2012.

“We are excited to report a strong performance for the first six months
of our 2013 fiscal year,” said Sanjay Sabnani, CrowdGather’s Chairman
and CEO. “Since the first half of our fiscal year tends to be weaker
cyclically, we anticipate that our revenues will improve in this, our
fiscal third quarter. Additionally, during our second quarter of fiscal
2013, our main focus was on the release of our forum advertising
marketplace, Adisn.com.
Due to the release of our marketplace in late October, it did not have
any impact on revenue for this reported fiscal period. We expect to
realize an initial benefit from utilizing this technology in our current
fiscal third quarter, but we anticipate that the primary push on the new
marketplace will accelerate in calendar 2013 as we ramp up efforts to
increase engagement from both advertisers and publishers.”

Gross profit was $423,063 and $995,718, respectively, for the three
months and six months ended October 31 of fiscal 2013, compared to
$468,296 and $693,592 for the same periods in the prior fiscal year. On
a quarterly basis, gross profit declined by 10% but increased 44% when
comparing the first six months of fiscal 2013 to the first six months of
fiscal 2012.

Net loss was $793,398 or $.01 per share, and $1,470,426 or $.03 per
share for the second quarter and six months ended October 31 of fiscal
2013, compared to $757,733 or $.01 per share and $1,628,168 or $.03 per
share for the same periods of fiscal 2012.

CrowdGather ended the second quarter of fiscal 2013 with approximately
$1.2 million of cash and $15 million of shareholders’ equity.

“Gross profit improved significantly for the six months ended October 31
of fiscal 2013 when compared to the prior year period, and we continue
to maintain a strong balance sheet,” Sabnani said. “We are always
seeking avenues to grow our business, whether through improving
advertising opportunities on our existing ad inventory, making forum
acquisitions, or developing partnerships with third-party publishers to
improve monetization.”

CrowdGather previously disclosed an expected, estimated range of 180 to
190 million monthly page views for fiscal 2013 based on the Company’s
efforts to prune non-monetizable content that also conflicts with the
Company’s terms of service. During October 2012, the Company reached
over 175 million monthly page views across all properties, and had over
14 million monthly unique visitors according to Google Analytics. The
decline in monthly page views is greater than expected in part due to
pruning but also because of multiple unexpected outages the Company
experienced from hosting portions of its network on Amazon’s Web
Services (AWS). Going forward, AWS outage risk is significantly
mitigated since CrowdGather has already moved the majority of its data
to a Company maintained network operating center in Los Angeles.
Additionally, although the monthly page view traffic is slightly lower
than anticipated, the decline will not significantly impact revenue
since the reduction is due in part to pruning non-monetizable content.

“Our traffic analytics revealed a positive and exciting trend,” Sabnani
continued. “We noted that mobile traffic accounts for about 15% of our
monthly network traffic and is increasing. This figure was less than 10%
about a year earlier. Although users can access content using mobile
browsers, we have recorded approximately 8,500 downloads of the Yuku iOS
and Android apps since their deployment. While increased mobile users
are helping us enter the mobile landscape and associated opportunities,
one side effect of increased mobile traffic is that mobile users spend
fewer page views per visit than do traditional desktop or laptop users,
and that can result in decreased overall network traffic as measured by
monthly page views. Given that we are pursuing mobile monetization
strategies, including some with our Yuku iOS and Android apps, we do not
expect revenue to be impacted adversely from increasing mobile traffic.
However, we do anticipate that increasing mobile traffic may reduce
total monthly page views for fiscal 2013 to a range of 160 to 170
million. As we have previously disclosed, we do not expect these
reported fluctuations in total traffic, or the ultimate level of traffic
after pruning, to negatively impact our revenues.”

CrowdGather also received a Notice of Allowance from the United States
Patent and Trademark Office (USPTO) for a patent application for systems
and methods of targeted advertising. The claims underlying this patent
relate to a system for generating targeted advertisement recommendations
based upon the social momentum between associated keywords.

About CrowdGather, Inc.

With its growing portfolio of special interest forums and enthusiast
message board communities, CrowdGather (www.crowdgather.com)
has created a centralized network to benefit forum members, forum
owners, and forum advertisers. CrowdGather provides a highly interactive
and informational social network for members, a management and
revenue-sharing resource for third-party forum owners, and a largely
untapped advertising network for marketers worldwide.

This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended) concerning future
events and the Company’s growth and business strategy.Words such
as “expects”, “will”, “intends”, “plans”, “believes”, “anticipates”,
“hopes”, “estimates”, and variations on such words and similar
expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of
the Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements.Factors that could
cause actual results to differ materially include, but are not limited
to, changes in the Company’s business; general economic, industry and
market sector conditions; the ability to generate increases revenues
from the Company’s forums; the ability to obtain additional financing to
implement the Company's long-term growth strategy; the ability to manage
the Company's growth; the ability to develop and market new technologies
to respond to rapid technological changes;competitive factors in
the market(s) in which the Company operates; and other events, factors
and risks disclosed from time to time in the Company’s filings with the
Securities and Exchange Commission. The Company expressly disclaims any
obligations or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change
in the Company’s expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is based.

CROWDGATHER, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

October 31, 2012

(UNAUDITED)

April 30, 2012

ASSETS

Current assets

Cash

$

1,161,737

$

2,328,492

Accounts receivable

182,848

42,995

Investments

28,570

28,570

Inventory

34,096

35,132

Prepaid expenses and deposits

85,791

88,932

Total current assets

1,493,042

2,524,121

Property and equipment, net of accumulated depreciation of
$294,543 and $241,569, respectively